Gregory Johnston
Allen Park, MI (USA)
Role(s):
Founder/Owner/Principal
Johnston Brothers Development, LLC
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Startup
Location:
Allen Park
Industry:
Real Estate
Year Founded:
2010
Number Employees:
1-10 people
Business Stage:
Growth (profitable)
Entity Type:
Limited Liability Company
Description:
Johnston Brothers Development, LLC, (JBD) began business in 2009 as an investment company that purchases, rents, repositions, and sells single-family and multi-family residential units that target lower middle-class renters.
According to a recent Marcus and Millichap National Apartment Report “The apartment sector will continue to lead the recovery in commercial real estate fundamentals.” By increasing its holdings in the multi-family housing market, JBD will be able to leverage this economic windfall to the advantage of its investors and principals. Low construction levels that have been the trend over the past five years are expected to continue well into the next five years. This will allow multi-family residential owners to capitalize on low vacancies to raise rents and reduce concessions.
The acquisition strategy of JBD revolves around emerging market trends. Target markets will include strong job growth and stabile or growing (non-military) businesses. Specific properties will exhibit value-added opportunities including: below market rents, deferred maintenance issues, burned out landlords, low occupancy, and “C” properties located in “B” neighborhoods.
JBD has enlisted the aid of mentors, advisors, realty management firms, contractors, and financial consultants to ensure our business model would stand up to the rigors of this investment arena. Furthermore, JBD started small, with single family rental homes. Knowledge acquired during this early business phase was essential to expanding the business to multi-family buildings. Familiarization with the people, paperwork, and processes involved is essential to success.
Going forward, the goals of JBD are to increase wealth for its investors and principals through the continued acquisition, repositioning, and resale or refinance of multi-family residential properties. At the same time, maintaining strong financials with properties in emerging markets will stay a priority.